How to Start a Debt Management Business

The debt management business is one of today's fastest growing industries, mostly due to a lack of understanding about credit and financial management. Launching a debt management business can provide your community with a high-demand service that is often desperately needed, while at the same time satisfy your entrepreneurial aspirations. Here is what you need to know about starting a debt management business.

Things You'll Need

Basic understanding of credit and financial management

Web page

Getting the Business Up and Running

Create a website. The first and most important step in launching a successful debt management business is developing a web page. Sites like GoDaddy.com, SquareSpace.com and Weebly.com provide services to help you get your site up and ready for business. A physical location may be necessary to provide your customers with face time to build trust in your financial advice, but you also can operate out of a home office.

Seek out, employ and train your staff. The advantage to running a debt management business is that employees can be paid through commission. This allows for fewer out-of-pocket startup expenses and makes expansion and growth much easier. Your staff should be trained to make successful contacts with creditors. If clients’ debts are beyond simple recovery, staff should be trained to walk clients step-by-step through filing for “The Wage Earner’s Plan.” The specifics of this plan, found in Chapter 13 of the Federal Bankruptcy Act, allow people to have breathing room in facing their debts without being harassed by collectors.

Advertise. This can be done through social network sites like Twitter, MySpace and Facebook, or on sites like Craigslist. If you want to start off small, advertise in your local Penny Saver magazine. These can be found at nearby grocery stores or gas stations. Print business cards and never pass on an opportunity to hand them out.

Organize debt and credit seminars. One of the fastest ways to develop a devout customer base is by providing initial free consultations with clients at the seminar location or scheduling consultations for later. There is no need to give away your services at this time, just use these seminars to get the word out about your business and to promote healthy financial management practices.

Tips & Warnings

Tips: Don't cut corners when training your staff. The quality of your service ultimately will be the result of what you put into staff training. An efficient well-trained staff allows you more time to focus on advertising, which will grow your business.